Industry mining Bitcoins largely depends on China, because this country is the most computing power and production of appropriate equipment. However, this trend cannot continue forever, said early fan of cryptocurrencies Jameson Lopp. According to him, more and more new devices for the mining of BTC is produced outside of China, so soon the country could lose a dominant position in the industry.
About China's leadership in the industry of mining Bitcoin has long been known. The last time this information was confirmed in may when the employees of the research Institute of the Cambridge centre for alternative Finance has created a map of the BTC miners. In addition, it revealed that China accounts for about 65 percent Hasrat network of the first cryptocurrencies.
Here is the same card.
When China will give up the position in mining?
The expert said that China dominates the mining industry due to the large number of available Usikov and cheap electricity. In addition, parts to build ASIC miners located in Asia, so they are easier to ship to China. It allows residents to be in that position in which they are today. Here is a quote Loppa, which leads Cointelegraph.
I expect that in the long term we will see how enterprise semiconductor manufacturing outside of Asia will begin to produce more chips for mining in this country with even more cheap sources of energy will actively develop its own infrastructure, which will lead to increased competition [with China]. Miners will seek new places for their activities, so China’s dominance in this area is unlikely to last long.
That is, Jameson is confident that sooner or later the leading position of China in the industry of mining Bitcoins will be lost. And it will not happen because of some significant event that is sharply, but gradually.
We will remind that now the main manufacturer of equipment for mining under the name of Bitmain serious problems with the supply of goods to its customers. All because of the long internal feud between the co-founders of the company Cihan Mikri Wu and Zhang. That is, in a sense, also opens up new opportunities to competitors — including those outside China.
This is interesting: the Mayor of the Chinese city will reduce electricity tariffs for miners of Bitcoin.
Jameson continues. He believes that even in spite of the current situation of China in the industry of mining Bitcoin, the country is not threatened by bitcoin. After all, if the representative of the state apparatus wants to take control over the entire niche of mining in the country, it will prevent copious amounts of independent observers in the network of Bitcoin. As the expert noted, there are special bots that track Orphan blocks. So users of crypto-currencies almost instantly find out about any suspicious activity in the network. However, for the worst-case scenario will be able to find a way out.
It is hard to imagine a scenario in which a representative of the government could quickly and secretly to capture enough Hasrat for the attack 51 percent longer than a few hours. Worst case scenario, in which the representatives of the state will take all the physical mining equipment: China will produce only empty blocks and make orfani from other blocks that actually contain the transaction. It will stop the confirmation of transactions in the network. Then we’re in for an interesting game: either wait patiently for new owners of mining equipment surrender, or to coordinate code changes that would make their mining device useless.
In the end, no serious risk for the network Bitcoin can not wait.
We believe that the decentralization of facilities for mining of Bitcoin worldwide would benefit the industry. But even now China does not pose a serious threat to the main blockchain cryptocurrencies are a lot of participants, which can immediately notice the first signs of attack 51, and the developers in the case which will also come to the rescue.
Finally, the last argument is: China dominates mining in the niche long enough, and in all that time nothing wrong with the network did not happen. In accordance with the Lindy effect, it can be assumed that this will continue.
By the way, Bitcoin operates without breaks since 2013. Accordingly, the cryptocurrency was online and perform their functions 99.9854 percent of the time since launch. And this is a great result.
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